Financial Institution Bond with Extended Coverages Table of Contents I. CONSIDERATION CLAUSE ............................................................................................................................................ 3 II. INSURING AGREEMENTS .............................................................................................................................................. 3 A. FIDELITY ..................................................................................................................................................................... 3 Coverage A.1. Employee Dishonesty ............................................................................................................. 3 Coverage A.2. Trading Loss ............................................................................................................................ 3 Coverage A.3. ERISA ........................................................................................................................................ 3 Coverage A.4. Restoration Expenses ............................................................................................................. 4 B. ON PREMISES ............................................................................................................................................................ 4 C. IN TRANSIT ................................................................................................................................................................. 5 D. FORGERY OR ALTERATION .................................................................................................................................... 5 E. SECURITIES ............................................................................................................................................................... 6 F. KIDNAP AND RANSOM ............................................................................................................................................. 7 G. COUNTERFEIT MONEY AND COUNTERFEIT MONEY ORDERS ........................................................................... 8 H. CLAIM EXPENSE ....................................................................................................................................................... 8 I. INDEMNITY FOR INJURY OR DEATH OF DIRECTORS OR EMPLOYEES ............................................................ 8 J. SERVICING CONTRACTORS .................................................................................................................................... 9 K. AUTOMATED TELLER MACHINES .......................................................................................................................... 9 L. TRANSIT CASH LETTERS ......................................................................................................................................... 9 M. SAFE DEPOSIT BOX ................................................................................................................................................ 10 Coverage M.1. Legal Liability ......................................................................................................................... 10 Coverage M.2. Loss of Customers' Property ............................................................................................... 10 N. REAL PROPERTY MORTGAGES - DEFECTIVE SIGNATURES ........................................................................... 10 O. STOP PAYMENT ORDERS ORSPECIMEN WRONGFUL DISHONOR OF CHECKS .............................................................. 10 P. COMPUTER SYSTEMS ............................................................................................................................................ 11 Coverage P.1. Computer Fraud ..................................................................................................................... 11 Coverage P.2. Fraudulent Instructions ........................................................................................................ 11 Coverage P.3. Remote Access PBX System Fraud .................................................................................... 11 Coverage P.4. Restoration Expenses ........................................................................................................... 11 Q. EXCESS SECURITIES .............................................................................................................................................. 11 Coverage Q.1. On Premises ........................................................................................................................... 11 Coverage Q.2. In Transit................................................................................................................................. 12 III. GENERAL AGREEMENTS ............................................................................................................................................ 12 A. NOMINEES ................................................................................................................................................................ 12 FIB-3001 Rev. 01-16 Page 1 of 35 © 2016 The Travelers Indemnity Company. All rights reserved. B. ORGANIC GROWTH ................................................................................................................................................ 12 C. CONSOLIDATION - MERGER - PURCHASE OF ASSETS .................................................................................... 12 D. CHANGE OF OWNERSHIP - NOTICE ..................................................................................................................... 13 E. REPRESENTATION OF INSURED .......................................................................................................................... 14 F. JOINT INSURED ....................................................................................................................................................... 14 G. COURT COSTS AND ATTORNEY’S FEES - LEGAL PROCEEDINGS - ELECTION TO DEFEND ...................... 14 H. REWARD PAYMENTS .............................................................................................................................................. 15 IV. DEFINITIONS ................................................................................................................................................................. 15 V. EXCLUSIONS ................................................................................................................................................................ 23 VI. CONDITIONS ................................................................................................................................................................. 28 A. DISCOVERY .............................................................................................................................................................. 28 B. BOND PERIOD ......................................................................................................................................................... 28 C. SINGLE LOSS ........................................................................................................................................................... 28 D. SINGLE LOSS LIMIT OF INSURANCE .................................................................................................................... 29 E. AGGREGATE LIMIT OF INSURANCE ..................................................................................................................... 29 F. DEDUCTIBLE ............................................................................................................................................................ 29 G. NON-ACCUMULATION OF LIMITS ......................................................................................................................... 30 H. NOTICE - PROOF OF LOSS - LEGAL PROCEEDINGS ......................................................................................... 30 I. VALUATION .............................................................................................................................................................. 30 J. ASSIGNMENT ........................................................................................................................................................... 31 K. SUBROGATION ........................................................................................................................................................ 31 L. RECOVERIES ........................................................................................................................................................... 31 M. COOPERATION ........................................................................................................................................................ 32 N. ANTI-BUNDLING ...................................................................................................................................................... 32 O. LIMIT OF INSURANCE UNDER THIS BOND AND PRIOR INSURANCE .............................................................. 32 P. OTHER INSURANCE OR INDEMNITY .................................................................................................................... 32 Q. COVERED PROPERTY ...........................................................................................................................................